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To give you an example with PowerTrade S&P LT, during average market action, I suffered, on a regular basis, $5,000 drawdowns. During market action where trends prevailed, the average drawdown would be smaller. During market action where sideways movement was dominant, larger drawdowns would...

Article from PowerTradeSignals.com May 20, 2001 I will admit, as long as I have been trading, as many drawdowns as I have gone through, and some totally devastating some of my accounts before the days I focused on money management, they never, ever get any easier. In fact, logically, they...

I do agree with what you say. In his book (just bought it) he does make the statement that no money managment plan will turn a losing system into a winning system. The examples in the article are based on the assumption you already trade a system that has a positive mathematical expectation. If...

PROTECTING PROFITS This is where things begin to not only get interesting, but exciting as well. If you have properly protected the initial capital, you stand a very good chance of staying in the game long enough to finally reap some profits from your trading. Some of the most important...

PRESERVING EQUITY - THE POINT OF NO RETURN from PowerTradeSignals.com This article should be read only after reading the article "The Power of Proper Money Management". If you have not read that article, then this one might not make as much sense. The subject of preserving equity can be...

THE LOGIC BEHIND THE FIXED RATIO METHOD I realize some of you may be saying that a fixed fraction and a fixed ratio are the same thing. But, in fact, they are referring to two different subject matters…and that is the difference. The fixed fractional method is referring to what percentage...

FIXED FRACTIONAL’S MASSIVE DRAWDOWNS If the method being used in the above scenario to increase from 20 to 24 contracts has average profitable trades in the range of $1,000 to $2,000, this will cause the money management system to skip contracts at higher levels. If you make it up to twenty...

STOP HERE FOR A MOMENT Before reading further, the previous illustrations should have left one very big impression about how powerful money management can be. Let’s take the time to re-assert a few things before we go on. 1) Money management is more powerful than any trading system that...

I wanted to start a thread on money management and get others' ideas. This is the article from PowerTradeSignals.com that I got and thought I should share. I put their name in here so as to not infringe on anything..... hopefully I don't get busted! THE POWER OF MONEY MANAGEMENT One...